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Marketing Plan

New Revolutionary Green

Table oI Contents

1.0 Executive Summary ii
2.0 Market Trend Analysis 1
3.0 Environmental Analysis 2
4.0 Competitive Analysis 3
5.0 Segmentation Analysis and Consumer Buying Behaviour 6
5.1 Objectives 6
5.2 Target Market 7
5.3 Why this Target Segment? 7
5.4 Target Market ProIile 7
5.5 Consumer Buying Behaviour 9
6.0 Positioning Statement 9
7.0 Marketing Mix 9
7.1 Product 10
7.2 Price 11
7.3 Place 12
7.4 Promotion 12
8.0 Financial Analysis 14
9.0 Exhibits 16
9.1 Exhibit A Weekly Schedule oI Classes OIIered at NRG 16
9.2 Exhibit B - Selective Product Comparison (in CAD) 16
9.3 Exhibit C NRG Floor Plan 17
9.4 Exhibit D Consumer Buying Behaviour Collage 18
9.5 Exhibit E Perceptual Map oI Competitors 18
9.6 Exhibit F Bulls Eye Diagram 19
9.7 Exhibit G Forecasted Income Statement 19
9.8 Exhibit H Total Units Sold 20
9.9 Exhibit I Revenue Calculations 20
9.10 Exhibit J Break-Even Analysis 20
10.0 Bibliography & Citations 21

1.0 Executive Summary
With Aritzia Iounded in 1984 and growing at a steady rate in the retail sector, consumers today
are now demanding a new line oI apparel. Yoga and other Iorms oI physical and mental
disciplines has been an ongoing trend in the past Iew years, stimulating demand Ior Iitness
apparel. Furthermore, Iunctionality adds value to active-wear and provides an opportunity Ior
retailers to understand and satisIy that need. To meet the needs oI our potential customers, New
Revolutionary Green (NRG) is a new Iashion line that integrates technology with style and
comIort while maintaining an eco-Iriendly image.
NRG is a standalone label under Aritzia Iocusing on 'Green, innovative, and Iashion-Iorward
athletic apparel. This report provides an overview oI our product in addition to an in-depth
analysis oI the several Iactors that can aIIect our brand and a detailed marketing plan to reach our
target audience. The report contains the Iollowing:
N Analysis oI the current market trends; supported with recent statistics and market data
N Environmental analysis oI how external Iactors will aIIect our brand
N Analysis oI our direct competitor lululemon athletica
N Overview oI the key target segment including objectives, target proIile, and buying
N Description oI NRG with a marketing plan to strategically launch and position the label
N Financial Iorecasts Ior budgeting purposes
In conclusion, this proposal recommends the launch oI the new label New Revolutionary

2.0 Market Trend Analysis
AIter conducting thorough exploratory research, the phenomenon oI interest Ior teenagers and
young adults revolve around Iashion and staying Iit. Today, yoga seems to be the new trend. It
emphasises ongoing 'Green and is now seen as a popular type oI exercise. Not only does it help
to relieve stress but it also helps the body to relax and stay slim. To Iollow along and incorporate
this trend, Aritzia decided to join in the social and environmental movement by creating an
athletic apparel industry Ior women.
Based on Canadian yoga statistics since 2003, Canadians have been practicing yoga, and has
been growing at a rate oI 15 each year. Within this group segment aged 18-34, 72.3 oI the
participants are Iemales
. With a steady approximation oI this market, Aritzia thereIore decided
to Iocus on a target market Ior Iemales between the ages 23-35, which are urban trend Iollowers.
As we can see based on the statistics, the market is sizeable - covering approximately 68.6 oI
the Iemale population within Ontario
. Nonetheless, women are the majority oI the decision-
makers Ior merchandise. With the dynamic Iashion trends changing season to season, women
can be considered Iashion-Iorward and shopping-enthusiasts. They buy clothes to Iollow the
trend whereas males tend to shop when they are in need oI an item not seeing brands as
important as Iemales.
Based on the inIormation given Irom 2008, it shows that shopping Ior yoga is primarily shopping
Ior the ideal pair oI pants; comIortable and stylish. From gathering secondary data and
observing conclusive research through online reviews about lululemon clothing, the rating
distribution is highly skewed to a 5-star rating. Although customers do Ieel their products are
expensive and possibly even overpriced, they still continue to purchase their products because
they perceive value in them. Sales continue to increase as they promote value-based products.

Statistics show that Canadian women have spent $79.1 million on yoga apparel last year, and
only 63 oI those purchases were worn Ior sports and exercise. In addition, only 30 oI
lululemon clothes are used Ior yoga
. This leads to the conclusion that these purchases were not
made just Ior athletic purposes, but also Ior the Iashion element and trendy luxury labels.
Focusing on regional shopping centres in Toronto, Aritzia and lululemon are considered as
notable tenants
. This means that the two brands have become a Iashion success as Iemales
today are bound to walk into either oI those stores to make purchases. As Aritzia is branching
into yoga wear, this leads to a new line oI apparel titled - New Revolutionary Green. This new
brand label, a subsidiary oI Aritzia, Iocuses on yoga wear Ior women, competing with only one
direct authentic yoga brand competitor, lululemon. Our biggest competitor has a current market
value oI 35.36, which remains on a steady increase Irom time to time. Our goal is to successIully
enter this market, create value in our brand, and portray our apparel to be at par with lululemon,
iI not better.
3.0 Environmental Analysis
The biggest trend in North America has been going 'Green. Companies are taking initiative to
go 'Green and are encouraged by government to do so. As a result, 'Green clothing has
emerged Irom brands such as lululemon. This is a trend that has a grasp on a global perspective.
Companies like Nike have set plans to have 100 oI their clothing in 2011 to have at least some
'Green material
. Canadians value a healthy liIestyle with the need to be physically and
mentally active
. The mentality oI Canadians is to pursue a healthy living liIestyle while
conserving the environment at the same time. These are considered as value-added to many
companies that try to Iollow suit and provide consumers with what they are asking Ior. These

two trends - both social and cultural - aIIect all businesses and are reinIorced by marketers and
by the government. It is a trend that tries to protect the environment and to aid oneselI.
Lululemon is the most notable in the clothing industry to IulIill the need by promoting yoga
athletic clothing while being environmentally Iriendly. 'Tweens crave Ior what is trendy and in
the business market, the promotion oI healthy active living and environmental Iriendliness is the
most dominant.
Technology plays a major role in the development oI our product and how to sell it. Lululemon
is Iocused on presenting new technology. They created the Luon technology and partnered with
Descente Ltd to constantly create new technology Ior clothing
. Technology is used to assist in
advancing 'Green clothing and saving energy within retail stores. Usage oI Radio Frequency
IdentiIication (RFID) chips have been increasing within the retail industry in which tracking
items can be done in an instant. By being able to track every single item, the chips have the
ability to provide protection Ior retail companies and give great customer service on their items
Going Iorward, RFID chips will soon be part oI almost all retail industries in the next decade. To
remain competitive, companies must invest in RFID technology to not only reduce costs but also
to increase sales by providing quick and accurate service.
4.0 Competitive Analysis
Within the yoga community, the one major retailer Ior yoga apparel is lululemon Athletica. It
started in 1998 in Vancouver, British Columbia and has opened over 100 stores in Canada,
expanding their retail stores into large urban markets
. Although there are only 15 lululemon
stores in Toronto
, through their unique marketing and advertising strategies, they have managed
to capture a large portion oI men and women who practice yoga. While there are a Iew retailers

that sell yoga apparel and related accessories in Toronto, (Ior example: Roots Yoga, Margarita
Active-wear, Naturals Apparel) these brands operate on a much smaller scale compared to
lululemon and have been unsuccessIul in securing market share or gaining brand awareness. Due
to the market niche that lululemon has been able to IulIill, it is without a doubt that lululemon is
the only major competitor.
Lululemon`s method oI promoting their image and creating brand awareness is very unique.
Absolutely no money is spent on advertising
. Instead, lululemon has programs where true
athletes are Ambassadors that share the same philosophy and culture that lululemon embodies:
'to live longer, healthier and more Iun lives. First, lululemon enlists local athletes and Iitness
instructors as Ambassadors who provide Ieedback to lululemon on the Iit, Iunction, Iabric,
design and quality oI their apparel. In return, lululemon sends staII and customers to help these
instructors build their own businesses. By partnering up with Iitness studios, this helps lululemon
build a communicative spirit among athletes. Each store has a co-ordinator that organizes yoga
or Iitness classes (Ior example, running clubs) which helps promote brand awareness.
Furthermore, lululemon searches Ior local athletes to work within their stores
. These athletes
can provide personal testimonials on how great the product is when customers have questions
about the perIormance oI the athletic apparel.
All oI lululemon`s business strategies have been aligned with the idea oI encouraging people to
lead healthy active lives. Their maniIestos oI motivational quotes listed on their environmentally
Iriendly reusable bags help promote their image
. Lululemon`s positioning is Ior the upper
middle class who practice yoga. Lululemon`s clothing is athletic wear that is comIortable and
Iorm Iitting and the product`s key diIIerentiation is the unique Iabrics used to manuIacture the

Lululemon`s products are distinctive in the types oI Iabrics that they use. The materials used to
manuIacture the clothing have many technical Ieatures; the brand has prided itselI on a type oI
Iabric that is moisture wicking. Furthermore, lululemon sells clothing that uses silver yarn that
eliminates bacteria, so the clothes stay odourless
. These practical Ieatures compete with NRG`s
technology oI using Iriction to generate electricity while practicing yoga. This competes directly
with lululemon`s products as this Ieature within clothing is exclusive to NRG, just as the special
Iabrics are exclusive to lululemon (ReIer to Exhibit F).
The use oI these special Iabrics by lululemon is very practical and useIul Ior athletes. Clearly, it
brings great value to their customers. Lululemon uses a value-based pricing method, which
Iocuses on the overall value the product delivers
. The clothing Ieatures are unrivalled in the
active wear category and thus, by using the improvement value method, it is evident that
consumers would be willing to pay much more Ior their products relative to other comparable
Based on data Irom Statistics Canada, in the 2009, lululemon had approximately 0.105 oI all
retail market shares in Canada
. However, this ratio is not truly reIlective oI lululemon`s true
market share as lululemon`s retail stores speciIically sell yoga athletic wear. Using data Irom
other major athletic clothing brands in Ontario, lululemon captures approximately 1.04 oI the
market share selling athletic apparel (Total athletic apparel market share in Ontario Iound by summing
the sales oI Nike, Reebok, Adidas, Under Armour, Puma, Columbia Sportswear, New Balance,
Lululemon (private companies: Roots and Ice Gear were not included as there were no sales numbers
publicly available)). Lululemon is a market niche that specializes in selling yoga attire and
accessories, thereIore, a reasonable estimate oI 35 oI athletes who practice yoga are loyal to

the lululemon brand. Clearly, through lululemon`s unique promotional strategies, the exclusive
Ambassadors club have gained popularity through yoga and Iitness communities.

As a new competitor to lululemon, NRG oIIers similar Iitness classes Iree oI charge and designs
athletic clothing with a very unique beneIit to its customers, this leads lululemon to start oIIering
more or diIIerent beneIits Ior customer retention. For example, lululemon may start oIIering a
loyalty program to maintain its large market share within the Toronto area. However, due to
lululemon`s strong connection and relationships within the yoga and Iitness communities
developed through their Ambassadors program, customer loyalty may not be an issue. However,
due to advanced technology that NRG`s clothing has to oIIer, lululemon may have to start
investing in research and development to expand the Ieatures oI their current Iabrics.
It is
without a doubt that NRG will enter the market as a strong competitor towards lululemon.
5.0 Segmentation Analysis and Consumer Buying Behaviour
5.1 Objectives
New Revolution Green (NRG) is built as a subsidiary oI Aritzia, a Canadian clothing company
Ior women. Its mission is to provide customers with high-quality, environmentally-Iriendly
athletic wear. At the same time, it oIIers clothing that is casual and comIortable and yet stylish.
We do this by providing customers with clothing which Iollows the latest Iashion trends.
Our marketing strategy is to attract visibility quickly by pricing our products at par and slightly
above our major competitor- lululemon athletica; this allows us to create perceived value in our
consumers` minds. NRG will embed a technology called Piezoelectricity which will help
promote our eco- Iriendly store.

5.2 Target Market
New Revolution Green will be located in downtown Toronto where the central business district
oI Toronto is located at. This district contains the headquarters oI many Canadian companies as
well as a large residential population. Lots oI high-rise condominiums are also located nearby.
NRG athletic apparel has one key market segment. This target market is Iemale only, 23- 35
years oI age, who are high-income individuals having an annual income oI $50,000 or more,
according to Statistics Canada.
5.3 Why this Target Segment?
We have targeted our sales towards this speciIic market segment as our store is located in an up-
scale shopping district where it is also a Iinancial district. There are all sorts oI designer Iashion
and upscale stores located in this area, since it is also a Iinancial district; the majority oI
customers to these stores will generally have high income and will be able to aIIord the premium
priced apparel we have. Young consumers, aged 23-35, tend to have more disposable income
than the older generation, they are willing to spend more money on clothing and are more
conscious oI the Iashion trends. According to the Women`s Clothing Stores article, women
between the ages oI 17 and 24 increased spending on clothing by 1 percent, whereas purchases
by women between the ages oI 35 and 44 Iell by 10 percent, and purchases by women over the
age oI 55 dropped oII 13 percent.
5.4 Target Market Profile: FashForward Greenies - Refer to Exhibit D
Gender: Female
Age: 23- 35

Education: University Degree Holders
Income: $50,000
Type: Iashion Iorward, trend Iollowers, environmentally Iriendly, healthy liIestyle
New Revolution Green Iocuses its business with individuals who earn an annual income oI
$50,000 or more, these individuals are high-income Canadians who account Ior 25 oI total
income in Canada, according to Statistics Canada. We grouped this market according to where
they lived- Toronto, Canada, a larger urban area where 31 oI the 5.5 million Canadians who
earn $50,000 annually live.
High Income Canadians. who thev are / where thev live (according to Statistics Canada)
(1) 5.5 million Canadians earn $50,000 annually; (2) 46 oI this 5.5 million Canadians live in
Ontario; (3) 31 oI this 5.5 million Canadians live in larger urban centres, i.e. Toronto; (4) 25
oI this 5.5 million Canadians are women; (5) 58 oI all women aged 15 and over had jobs;
The predominant shopper in a yoga Iocused athletic apparel store is a typically 23 to 35 year-old
Iemale who has a wide range oI disposable income and are trend Iollowers. FashForward
Greenies are individuals who are active, busy and independent. These individuals hold university
degrees and a decent paying job, thereIore, they are able to purchase our premium priced
products. This year, sportswear becomes street-wear in spring 2010 according to research,
individual trend Iollowers who also lead a healthy liIestyle are also included in this target
segment. Individuals in this segment lead a healthy, balanced, Iun-Iilled liIestyle, who are also
environmentally Iriendly and are willing to spend money on luxury athletic apparel. Lastly,
FashForward Greenies are extremely Iashion driven shopping Irequently, and want the newest
style. They deIine value as: Fashion ~ Quality ~ Price.

5.5 Consumer Buying Behaviour
Our target market`s buying behaviour can be described as variety-seeking buy behaviour. They
have low involvement but perceive the diIIerent athletic apparel brands diIIerently. Customers in
this segment are willing to try something new or diIIerent. They may have spent an amount oI
time and eIIort looking and evaluating the other available brands - lululemon, keylime athletic
wear, tee-art. FashForward Greenies have had prior experience with athletic wear and their
perceived risk is moderate.
6.0 Positioning Statement
New Revolutionary Green (NRG) is Ior young Iemales concerned with the environment who are
seeking comIortable apparel to express and enhance their physical and mental wellbeing. NRG
strives to be an innovative and trendy line oI athletic Iashion established as its own independent
retailer and brand that integrates technology into its products to deliver Iunctionality in addition
to style. Unlike lululemon athletica, NRG apparel can charge electronic devices eIIortlessly
utilizing Piezoelectricity technology
while oIIering comIort and style.
Please see Exhibit E Ior a perceptual map oI where NRG hopes to establish its position in the
market. In comparison with other competitors, NRG is priced in the upper right quadrant
oIIering high quality at a high price creating value Ior the customer.
7.0 Marketing Mix
New Revolutionary Green (NRG) is a new Iashion line Ior women that Iocus on comIort and
style. Developed and established under the parent company Aritzia, NRG will have a strong
position in the apparel market Ior women who seek trendy and comIortable clothing. NRG will
be an independent retail store located in downtown Toronto, Ontario. The core competency

revolves around advocacy and drive Ior the environment. The store and its line oI products will
IulIill the needs and wants oI those who seek physical and mental wellbeing.
7.1 Product
NRG aims to provide potential customers a unique experience not limited to simply shopping.
Aside Irom purchasing our quality products, we want to build a strong customer relationship
through other innovative methods.
Our store and the new line oI merchandise will exploit a technology called Piezoelectricity.
Piezoelectricity relies on mechanical stress to generate an electric Iield, which can be utilized Ior
Iunctional purposes such as charging electronic devices (i.e. mobile phones, iPods)
. NRG will
take advantage oI this technology and embed it within our stores and products to promote a
'Green mindset.
The store atmosphere will be a signiIicant component in deIining our brand and merchandise.
We will be striving to promote environmentalism (i.e. Going 'Green)
through day-to-day
operations and our merchandise - advocating this broad philosophy as Iollows:
Piezoelectricity technology inIused with our high-end quality merchandise supports
environmentalism; providing customers Iunctional value as they perceive our trendy and
comIortable products
Lighting will be partially powered by Piezoelectric apparel worn by customer service
representatives in the store
Physical and mental discipline classes are oIIered at diIIerent times oI the week allowing
customers to get involved with our vision Ior overall wellbeing (Exhibit A)

Emphasizing comIort and social harmony, range oI apparel sizes will suit most, iI not all,
our customer base. II otherwise, custom orders can be arranged
Store representatives will be trained to oIIer advice and advocate company values to
customers regarding health, Iitness, and the environment
Furthermore, the store layout and structure will act as a marketing strategy to capture market
share. As our target segment (Section 5.4) is Iitness-Iocused and environmentally conscious, the
layout relies on natural lighting through sun rooIs, large windows, and mirrors. ReIer to Exhibit
C Ior more details. StoreIront Display 1` will have staII perIorming Yoga and other exercises to
promote healthy living and mental wellbeing. The Fitness Centre will hold weekly classes that
are Iree oI charge in addition to personal training sessions, which require a Iee. With organic
plants and windows throughout the store, the thought oI selI-expression and comIort will expose
customers to calmness and harmony. Under well-deIined interior design and expressive
marketing displays, NRG can capture market share within the target segment we set out to reach.
7.2 Price
NRG products will be priced competitively with our direct competitor lululemon athletica.
NRG will aim to price at a premium to reIlect an image that sustains quality and prestige
products and customer intimacy with our customers adopting a 'Price Lining strategy. NRG
will be customer-oriented to create value in our brand and its merchandise to position ourselves
as a premium Iashion line in the consumers` minds. Using 'Price Lining
as our pricing tactic,
top-oI-the-line products are priced above the competition while pricing the majority oI our
products at par with our competitors as shown in Exhibit B. This strategy creates perceived
value in consumers` minds because we Iorecast the majority oI our sales to come Irom our

standard line. For customers who purchase our main products, we deliver value such that they
perceive to be buying quality, brand, and status due to other merchandise priced at such a high
7.3 Place
NRG will be located in downtown Toronto, Ontario. Established as a Canadian brand, NRG`s
retail store will provide customers a convenient location to shop and participate in our various
Iunctions held every week. NRG aims to deliver value through developing an eIIicient inventory
system Ior the products in the store to be available Ior customers in the right quantities and at the
right time. As our store only holds NRG merchandise, it is categorized as a specialty store
concentrating on Piezoelectricity-inIused apparel.
ManuIacturers will distribute indirectly to consumers as all products are to be sold in our NRG
retail store. The key point is the location oI our store. Stationed in downtown Toronto, NRG
takes advantage oI the busy streets and the vast amount oI people in the area, including our target
audience (reIer to Section ).
7.4 Promotion
Through selective Integrated Marketing Communication (IMC) tools, we hope to maintain a
prestigious image in the consumers` minds. Following the steps Ior an IMC campaign, we take
into account the Iollowing:
1) Target Audience has been identiIied (reIer to Section 5.4)
2) Objectives are aligned with our positioning statement to be the preIerred store Ior our
target customers when they are seeking 'Green apparel Ior comIort, style, and

Iunctionality. Launch campaign hopes to inIorm target segment oI the new store and its
unique products.
3) Budget has been Iorecasted (reIer to Section 8.0)
4) Key message directed to target audience: Our unique selling proposition can be viewed as
'NRG...Green & More. We want customers to think oI NRG when they think oI
Green`, healthy active living, and physical and mental wellbeing.
5) Media and medium are limited to magazines to prevent negative word-oI-mouth.
Magazines selected are related to health, Iitness, and mental wellbeing such as Fitness,
Natural Health, Yoga Journal, and Women`s Health
6) Communicating our message through the Iollowing IMC tools:
N Public Relations
4 Partnering with health charities (i.e. Change Foundation
) Ior mutual beneIits
relating to health and wellbeing, reIerring to cause-related marketing
4 Sponsoring various health and Iitness institutions (i.e. Yoga Sanctuary
) with
equipment and Iitness apparel (i.e. Yoga clothes and/or mats)
4 Releasing annual reports to maintain a strong Ior potential investors
N Limited Sales Promotions Grand Opening Sale, Iollowed by exclusive sales Ior
customers who actively visit our store
N Electronic Media promoting our store through a corporate website, blogs, and social
media (Facebook, MySpace, Twitter)
7) Assess the impact oI our campaign will allow us measure our progress and success Ior
the launch oI our new brand and store.

8.0 Financial Analysis
NRG projected Iirst year revenue is $1,249,887, selling 12,625 units, and will grow at a
similar rate to the main competitor Lululemon (66 per year
). The Iirst year revenue was
obtained through segment proIitability. NRG will target women in Canada who did Yoga within
the past 12 months (1.3 million people
) who has an income oI over $50,000 (22.7
). The
target market will primarily be living in Toronto, Ontario (14.26 oI the total population).
Through engaging in rigorous advertising campaigns, NRG projects to have a great reception to
their magazine ads, getting approximately 75 oI the readers to come into the store. NRG is
very positive about the clothing line which have been prepared and will hope to obtain excellent
consumer purchase results; NRG projects 40 oI the customers who enter the store will buy a
product. The high quality clothing line will be priced at $139 while the regular clothing line is
priced at $95. NRG has decided at those prices through market research; to penetrate into the
market, NRG priced the clothing line cheaper than Lululemon (main competitor). ReIer to
Exhibit H and I Ior the calculations on the segment proIitability and Iirst year revenue numbers.
NRG will start making a proIit on the income statement in third year oI operations. II the
company can maintain an average 66 oI growth per year and keep the cost oI goods sold and
variable expenses proportional Irom year to year, NRG is projected to earn an EBITDA oI
approximately $85,000 in the third year. The breakeven sales number is 39063 units; assuming
the variable costs stay proportional with the increasing revenue. ReIer to Exhibit I and J Ior the
calculations oI the proIitability year and breakeven sales.
New Revolution Green arrived at the expense numbers through comparison with the
primary competitor Lululemon. Since NRG`s business model is very similar to Lululemons, the
selling and administrative expenses will be similar proportionally as well. AIter careIul research,

NRG has Iound a building Ior lease in downtown Toronto which they can renovate Ior their new
store. The rent will be $10,000
per month which will be treated as a Iixed cost. NRG will also
be promoting in Yoga Journal in addition to the word oI mouth and product promotions. The
company has researched it will cost them approximately $380,000
Ior a Iull page colour
advertisement in the magazine. NRG hopes to continue the magazine promotion on a yearly
basis and will treat the magazine expense as a Iixed cost.

9.0 Exhibits
9.1 Exhibit A Weekly Schedule oI Classes OIIered at NRG
Activity Monday Tuesday Wednesday Thursday Friday Saturday
Yoga 6-7 -- -- 8-9 7-8 Private
Pilates 7-8 6-7 -- -- 8-9 Lessons
Spinning 8-9 7-8 6-7 -- -- ,
Core Stability -- 8-9 7-8 6-7 -- ,
Aerobics -- -- 8-9 7-8 6-7

9.2 Exhibit B Selective Product Comparison (in CAD)
New Revolutionary Green
lululemon athletic
Yoga Pants (Solid) 95 98
Top Quality Yoga Pants* 189 108
Shorts (Groove) 50 48
Hoodie (Solid Zip-Up) 75 98
Tanktop (Racerback) 35 42
*Note: NRG prices certain products at a premium to create perceived value Ior customers

9.3 Exhibit C NRG Floor Plan

9.4 Exhibit D Consumer Buying Behaviour Collage

9.5 Exhibit E Perceptual Map oI Competitors

9.6 Exhibit F Bulls Eye Diagram

9.7 Exhibit G Forecasted Income Statement

NRG AnnuaI Income Statement

(in miIIions $CDN)

For year
Dec 31, 2012
For year
Dec 31, 2013
For year
Dec 31, 2014
Year 1 Year 2 Year 3
SaIes 1.2500 2.0750 3.4445
SaIes Returns and AIIowances 0.0625 0.1038 0.1722
Net SaIes 1.1875 1.9713 3.2723

Cost of Goods
SoId 0.5875 0.9753 1.6189
Gross Income 0.6000 0.9960 1.6534


SaIes and Administrative
Expenses 0.3875 0.6433 1.0678
Advertising Expense 0.3800 0.3800 0.3800
Rent Expense 0.1200 0.1200 0.1200
EBITDA -0.2875 -0.1473 0.0856

9.8 Exhibit H Total Units Sold
Population oI women who did Yoga 1,300,000
Income over $50,000 (Percentage) 22.7
Living in Toronto, Ontario (Percentage) 14.26
Positive Reaction to ads (Percentage) 75
Customers who buy (Percentage) 40
Total units sold 12625 units

9.9 Exhibit I Revenue Calculations
Assuming consumers purchase 1 unit Irom the high quality clothing line per 10 purchases
Irom the regular clothing line:

First year revenue:
10x x 12625
11x 12625
x 1148 high quality purchases
ThereIore, 11477 purchases Irom the regular clothing line

1148 * $139 11477 * 95 $1,249,887

9.10 Exhibit J Break-Even Analysis
From the numbers based on the Iirst year,
Cost oI goods sold: 47 oI revenue
Selling and Administrative Expenses: 31 oI revenue
Average revenue per product: 1,249,887/12,625 $99/unit
Average cost oI goods sold: (1,249,887*0.47)/12,625 $46.5/unit
Average Selling and Administrative Expenses: (1,249,887*0.31)/12,625 $30.7/unit
Contributed Surplus: 99 46.5 30.7 $12.8/unit
Fixed Costs: Rent Advertising $380000 $120000 $500000
Units to breakeven: $500,000/12.8 39063 units


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